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Hailey Phillips from Fearless Accounting talks about basic accounting for startups

Startup Accounting Best Practices

Mary and Hailey discussed essential accounting practices for startups. Hailey emphasized the importance of separating personal and business finances by opening a separate business bank account and using distinct bank cards. She also stressed the need for early cash flow tracking using tools like QuickBooks or Excel to project future success and monitor business goals. Mary added that investing money into the business should be categorized separately as a "loan from owner" to track returns on investment.

Tax Tips for Small Businesses

Hailey discussed common tax mistakes made by small business owners, emphasizing the importance of early tax planning and seeking professional help. She advised business owners to work with accountants familiar with their industry to maximize deductions and avoid penalties. Hailey also recommended regular financial check-ins, using automated tools like QuickBooks, and digitizing receipts to simplify bookkeeping. Mary agreed on the importance of having a marketing person, an accountant, and a lawyer on a startup's team.